Summary
This regulation establishes the National Appeals Division (NAD) within the USDA, creating an internal administrative appeals process for participants adversely affected by decisions from various USDA agencies (FSA, NRCS, RMA, etc.). It defines procedures for filing appeals, conducting hearings (in person or by phone), submitting evidence, and the standard of review (preponderance of evidence). It provides an independent review layer before judicial review, with Hearing Officers and a Director who can uphold, reverse, or modify agency decisions.
Reason
This procedural regulation does not create substantive compliance costs or market distortions; rather, it provides a low-cost, accessible administrative remedy for farmers and ranchers challenging USDA decisions. Deleting it would force appellants directly into federal court, dramatically increasing costs and complexity for individuals and small businesses who rely on USDA programs. It enhances rule of law by ensuring agency decisions are reviewable by an independent body within USDA, preventing arbitrary actions without adding regulatory burden on the public. The internal appeals process is more efficient and affordable than judicial review.